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Decreasing Employment Elasticity, Informalizing Labor Market and Ownership in China

Decreasing Employment Elasticity, Informalizing Labor Market and Ownership in China. Andong Zhu Tsinghua University, Beijing, China Nairobi, 2007.01. Outline. Introduction Decreasing Employment Elasticity Informalizing Labor Market Ownership Changes in the Chinese Economy Conlusion.

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Decreasing Employment Elasticity, Informalizing Labor Market and Ownership in China

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  1. Decreasing Employment Elasticity, Informalizing Labor Market and Ownership in China Andong Zhu Tsinghua University, Beijing, China Nairobi, 2007.01

  2. Outline • Introduction • Decreasing Employment Elasticity • Informalizing Labor Market • Ownership Changes in the Chinese Economy • Conlusion

  3. Introduction • Unsustainable trends in the Chinese Economy() == Consumption rate is too low == Inequality/poverty == concentration of wealth/low labor share==unemployment/informalizing employment

  4. China’s Changing Economic Structure, 1981-2003 (%)

  5. Decreasing Employment Elasticity

  6. Graduates from higher education institutes, employment ratio, employment(10,000 or %) 338

  7. Informalizing Labor Market

  8. Ownership Changes in the Chinese Economy • Shrinking SOE Sector • Increasing Private Enterprises’ Share • Increasing Foreign Sector

  9. Share in Industry Output by Ownership (%)

  10. Conclusion • Dangers in the Chinese Economy: re-colonizing • Foreign Capital Controls the Economy; • Locked at the low-Ladder of the World Economy • Strengthen the State and Empower the Working Class

  11. China’s Basic Economic Statistics, 1981-2001 (percent)

  12. China’s Basic Economic Statistics, 1981-2001 (percent)

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